EU passes US to become Ukraine’s largest donor in 2023
The European Union is planning to allocate EUR 4.5 billion (USD 4.755 billion) to Ukraine by the end of the year, relying on support from other donors, the EU's Commissioner for Economic Affairs Paolo Gentiloni said at a round table meeting at the IMF and World Bank meetings in Marrakech.
The EU has become Ukraine’s largest donor in 2023, having already disbursed EUR 13.5 billion (USD 14.266 billion) through the macro-financial assistance instrument. The 4.5 billion EUR would be in addition to this sum.
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"Overall, the progress is very positive, and I am optimistic about Ukraine meeting all conditions by the end of 2024 and beyond,” Gentiloni said, adding that the EU and other international partners should take pride in their contributions to Ukraine. This unity and solidarity have put Ukraine’s economy in a better position than many expected. "We count on the support of all international partners. We also need to coordinate the terms of assistance between international donors and financial institutions to ensure their consistency.”
Ukraine has demonstrated its ability to continue vital economic reforms, with current terms of EU financial support including judicial reform, improved economic regulation, and bankruptcy regime enhancements.
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The European Commission's proposal to allocate $50 billion over the next four years will enable the EU to significantly aid Ukraine in fulfilling its financial requirements. Hungary previously suggested that the EU provide Ukraine with only half of this promised assistance.
Ukraine is preparing a plan that envisions growth based on reforms and investments, in addition to international financial support. "The new candidate status for Ukraine also gave a powerful impetus to reforms, despite the ongoing war. We will continue to support Ukraine as much as needed,” Gentiloni stated.
The United States was the primary donor to Ukraine in 2022, allocating $11.98 billion compared to the EU’s $7.96 billion, and urged European colleagues to be more active. This year, the U.S. provided Ukraine with $10.9 billion compared to the EU's $14.66 billion. Additional funds expected from Washington by year-end remain uncertain due to a congressional crisis.
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